Tourism is not an industry in the conventional sense. In the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (1292.0), industries are defined on the basis of the primary goods and services which they produce. Tourism, however, is defined according to the status of the consumer. That is, it is the characteristics of the consumer that determine whether the production is included within the scope of tourism. For example, expenditure on a restaurant meal by a visitor contributes to tourism's share of the economy, whereas expenditure by a local resident does not.

Visitors, in purchasing products outside of their usual environment, have a positive economic impact on their destination by generating additional consumption at the destination over and above that generated by the resident consumers. This additional consumption provides the basis for the economic activity generated by tourism.

Visitors can be classified into national (domestic) and international visitors. National visitors consist of Australian residents who travel outside their usual environment within Australia. They include both overnight visitors (staying one or more nights at a location) and same day visitors. International visitors are those persons who travel to a country other than that in which they have their usual residence.

The contribution of an industry to the overall production of goods and services in an economy, gross domestic product (GDP), is measured by gross value added (GVA). Information on the relationship between industry GVA and GDP is provided in the Industry structure and performance chapter. A Tourism Satellite Account (TSA) is recognised internationally as the best method for measuring the economic contribution of tourism. Tourism GVA and GDP are the major economic aggregates derived in the TSA.

The tourism industry share of total GVA in 2007-08 was 3% (table 23.1). This share has declined from a peak of 4% in 2000-01.

23.1 TOURISM SHARE OF GROSS VALUE ADDED AND GROSS DOMESTIC PRODUCT

2003 - 04

2004 - 05

2005 - 06

2006 - 07

2007 - 08

Tourism characteristic industries GVA(a)

Travel agency and tour operator services

$m

1 245

1 235

1 329

1 421

1 465

Taxi transport

$m

253

245

284

340

335

Air and water transport

$m

3 632

3 734

3 884

4 156

4 241

Motor vehicle hiring

$m

554

610

676

832

735

Accommodation

$m

3 704

3 785

4 068

4 547

4 985

Cafes, restaurants and food outlets

$m

2 849

2 879

2 984

3 143

3 373

Total

$m

12 237

12 488

13 225

14 439

15 135

GVA of tourism connected industries(b)

$m

13 256

13 286

13 682

14 755

15 453

GVA of all other industries(c)

$m

3 172

3 005

3 038

3 102

3 145

Tourism GVA

$m

28 665

28 779

29 944

32 296

33 733

Tourism share of GVA

%

3.7

3.5

3.4

3.4

3.2

Net taxes on tourism products

$m

5 817

5 855

6 187

6 629

6 907

Tourism GDP

$m

34 483

34 634

36 131

38 925

40 639

Tourism share of GDP

%

4.1

3.9

3.7

3.7

3.6

(a) Tourism characteristic industries have at least 25% of their output consumed by visitors.

(b) Tourism connected industries are those industries not classified as characteristic that have products which are consumed by visitors in volumes which are significant.

(c) The share of GVA of all industries that provide outputs to visitors not included in characteristic or connected industries.

The tourism industry employed 497,800 people in 2007-08 (table 23.2). The number of tourism employed persons grew 8% between 2003-04 and 2007-08, slower than the growth in total employed persons (11%) over that period. Consequently, the tourism share of total employed persons has fallen between 2003-04 and 2007-08.

'...the total consumption made by a visitor or on behalf of a visitor for and during his/her trip and stay at the destination' (Explanatory Notes, Australian National Accounts: Tourism Satellite Account (5249.0)).

In 2007-08 tourism consumption was largest for long-distance passenger transportation and takeaway and restaurant meals (both 15%), followed by shopping (including gifts and souvenirs) with 14%, and accommodation services (11%) (table 23.3).

However, there are some marked differences in consumption patterns by type of visitor. Long-distance passenger transportation is the dominant tourism product consumed by domestic business/government (33%) and international visitors (23%). In contrast, domestic household visitor consumption is dominated by expenditure on shopping (including gifts and souvenirs) (19%) and takeaway and restaurant meals (18%).

International visitor consumption increased by 6% between 2006-07 and 2007-08 while total exports rose by 8% over the same period (table 23.4). Growth in international visitor consumption was strongest during 2006-07. In 2007-08, these visitors consumed $24 billion worth of goods and services produced by the Australian economy, representing 10% of the total exports of goods and services.

23.4 EXPORTS OF TOURISM GOODS AND SERVICES

2003 - 04

2004 - 05

2005 - 06

2006 - 07

2007 - 08

International visitor consumption(a)

$m

19 592

19 560

20 349

22 246

23 593

Total exports(b)

$m

147 219

167 562

196 274

215 695

233 853

Tourism share of exports

%

13.3

11.7

10.4

10.3

10.1

Growth in international visitor consumption(c)

%

7.4

-0.2

4.0

9.3

6.1

Growth in total exports(c)

%

-3.0

13.8

17.1

9.9

8.4

(a) Australian National Accounts, Tourism Satellite Account (5249.0).

(b) Balance of Payments and International Investment Position, Australia (5302.0).

(c) There are some conceptual differences between 5249.0 and 5302.0. See the explanatory notes in 5249.0 for further details.

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